Global alternative asset manager The Carlyle Group, which is chaired by founder David Rubenstein, has just cut a firm deal to buy the ortho-clinical diagnostics (OCD) division of Johnson & Johnson ( NYSE; JNJ). Carlyle are paying US$4.15 billion for the business, which is a global provider of screening, diagnosing, monitoring and confirming medical services. Carlyle expects the transaction to close by the middle of 2014, subject to customary closing conditions and any necessary regulatory approvals.
This is a significant transaction even for a group as large as Carlyle and Stephen H. Wise, a Carlyle Managing Director of The Carlyle Group, said of the deal after it was announced,
“Ortho-Clinical Diagnostics is an established global brand with a reputation for quality and innovation. Through accelerated investment in research and product development and continued expansion into both emerging and established markets, we expect to tap into rising demand for sophisticated medical diagnostic products and services worldwide.”
“We have been focused on the diagnostics industry for many years given its attractive growth prospects, driven by the crucial role it plays in health care decision-making and influencing patient outcomes. We believe that OCD, with its world class employee base and talented management team, is poised for the next level of success.”
The Johnson & Johnson OCD division is headquartered in Raritan New Jersey and has manufacturing facilities in New York State, Florida and, in Europe, in Wales. It operates globally with operations in 130 countries and its services provide total solutions for early screening, diagnosing, monitoring and confirming diseases, focused on supporting hospitals, laboratories and blood centers worldwide.
Equity for the transaction comes from Carlyle Partners VI, a US$13 billion U.S. Buyout fund, which completed fundraising in November 2013 with two hundred sixty-nine investors from 43 different countries. So far the Carlyle Group as a whole has had good experience in the health care field and has altogether invested more than US$6 billion of equity in heath care investments since inception.
About The Carlyle Group
The Carlyle Group is a global alternative asset manager, kisted on Nasdaq, with US$185 billion of assets under management across 122 funds and 81 fund of funds vehicles at September 30th, 2013.
Carlyle invests in a number of business segments and has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation.
Carlyle Group employs more than 1, 450 people in 34 offices across six continents.
About David Rubenstein
David Rubenstein was born and raised in Baltimore, Maryland. He graduated from Duke University in Durham, North Carolina before going on to earn his law degree at the University Of Chicago Law School.
After graduation Rubenstein went on to practice law with Paul, Weiss, Rifkind, Wharton & Garrison in New York, and later became domestic policy advisor to President Jimmy Carter during the late seventies.
After Carter lost the Presidency to Ronald Reagan, Rubinstein established his own private law practice, before going into partnership with William E. Conway, Jr. and Daniel A. D’Aniello to form the Carlyle Group in 1987 as an alternative asset management and investment company.
Rubenstein is estimated to have a net worth of US$3 billion, and is recognized as being a member of the Giving Pledge, a group of wealthy Americans who have pledged to donate more than half of their wealth to philanthropic causes or charities during their lifetime.